On the Path to Long-term Growth Vision
The much awaited Union Budget 2024-25, the first one from the Modi 3.0 cabinet, was announced recently. While, as always, it received a mixed response from the stakeholders, but one thing that stood out in this budget was a clear focus on long-term growth on the back of strong Manufacturing & Agriculture impetus, Employment Generation and sustaining Consumption growth story.
Once again infrastructure was hogged the limelight, which is the core to the vision of Viksit Bharat vision of the Government, maintaining the same amount of allocation of Rs. 11.11lakh crore for the infrastructure sector (as announced in the interim budget), amounting to 3.4% of the country’s GDP. This capital allocation targets critical infrastructure sectors such as roads, railways, airports, ports, and power plants. These government expenditure plans are meant to create enticing investment opportunities for private sector players, fostering collaboration on large-scale infrastructure projects.
According to EY officials, announcements for the development of plug and play industrial parks, industrial corridors, roads, etc., are expected to create opportunities for generating employment, improving connectivity, and promoting tourism which shall further boost the Indian economy.
Construction equipment manufacturers and allied segments are also enthused about the boost given to all the right sectors that will in turn offer a fillip to their businesses. Rural growth, fast-paced infrastructure development, highway construction, rail & port modernization, enhancing air connectivity, all these announcements augur well for the holistic growth of construction equipment companies.
As we now have a clear growth mandate, next few years, companies must concentrate on building capacities with a strong focus on bringing new age equipment which are high on technology & sustainability measures. The favourable economic indicators only accentuate promising opportunities and a clear pathway to take the growth trajectory ahead.
With festive season right in the corner, here’s wishing sound order books for companies and seize the infinite growth pastures waiting to be tapped…
